Land for the Many paid for by the few
It seems Labour are really stepping up their tactics to secure votes, especially with Mrs May announcing her retirement.
Jeremy Corbyn and the Labour Party have commissioned an alleged independent report to look at the way land in the UK is used and governed, the report is named “Land for the Many”
Now do not get me wrong I am all for offering help and support for those that are willing to help themselves but why should all the hard working landlords of this fair country have to give up their land because they have worked hard and others have chosen a different path?
Will all the Politicians and Lords from all parties give up their land should this report become legislation. In realistic terms what is the likelihood of such a report ever being passed through the house of lords? When you look at the collective landholdings of politicians and lords why would they vote to give up land?
From what I have read and heard there are a few key fundamentals that they have asked the report to cover:
It is not news that the Labour party would like open ended tenancies. Tenancies should be open-ended, in addition they want landlords to be unable to lose their power to evict a tenant who has not broken the terms of the tenancy agreement for the first three years of the tenancy agreement and should have to provide grounds for eviction after that point.
Now from my experience, the majority of landlords who have great tenants do not want to evict them. The majority of the evictions we carry out are for non payment of rent or unsocial behaviour, which is a suitable grounds for eviction? If section 8 did not take so long then most would provide grounds for eviction, the main reason section 21 has become so popular is the speed of tenant eviction, but very rarely is it for no reason.
Cap on annual permissible rent increases, at no more than the rate of wage inflation or consumer price inflation (whichever is lower).
This shows you how out of touch with the real world the labour party is, if they really had their finger on the pulse they would know that rents are increased due to costs such as additional legislation.
Replace the council tax with a progressive property tax. This should be payable by owners, not tenants.
All this would do is increase rents prior to any legislation. Landlords would work out what the tax would be and pass it on. Most private landlords are investing in buy to let properties to provide for their families futures not to become rich property tycoons.
The report wants to consider stamp duty and wants to phase it out for people buying homes, and the short fall in tax replaced by additional capital gains tax for any additional properties.
I wonder who will end up paying the additional tax, the landlord or tenants?
Buy to Let mortgages should be more firmly regulated and restricted.
Because of course now absolutely anybody can go and obtain a buy to let mortgage.
Discourage land and housing from being treated as financial assets by encouraging banks to redirect lending into productive sectors, encourage a more efficient use of the existing housing stock.
We currently live in a capitalist society, so now they want the banks to make less money and not make a profit for their shareholders and staff? How do you encourage a bank to do something if there in no legislation to enforce it? Also, you do not have to obtain your mortgage from a UK bank. Are they going to encourage all the banks of the world?
Encourage a more efficient use of housing stock, are they going to build more houses? Currently those that can afford to buy a house do so, those than cannot rent from a nice landlord who has invested time and money in a spare property.
We do need some form of change for this country to become the great nation it should be, however when you look deeper into the report and some of the references, it does not appear to be a balanced report with clear objectivity.It is quite clear to me that Labour have one way of looking at landlords and are anti landlord and pro tenant. Therefore, introducing measures to increase minimum tenancy agreements and impose no fault evictions and return the land to the people. They also appear to look upon landlords as cash cows and evil. The old tax the rich and give to the poor mentality, which is no way to have a balanced society. They miss the point that landlords are trying to provide for their financial future for them and family. You would think they would encourage financial growth, stability and wealth in order to reduce the strain on the benefit system, NHS and pension pots.
What are your thoughts on this report, is it really worth worrying about?